European Commission s Energy Savings Strategy Impact on Heating. Sabine Heyman 4 th Annual Middle Distillates Conference Antwerp, 31 January 2014
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1 European Commission s Energy Savings Strategy Impact on Heating Sabine Heyman 4 th Annual Middle Distillates Conference Antwerp, 31 January 2014 IWO EUROPEAN Institut für HEATING wirtschaftliche OIL Oelheizung ASSOCIATION e.v.
2 Content Introducing Eurofuel The EU s approach to energy & climate Regulatory challenges Eurofuel s actions
3 Introducing Eurofuel The oil heating s voice in Brussels Representing the interests of the heating oil sector towards the European Institutions
4 The EU s approach to energy & climate EU policy environment Climate and Energy 2030 targets Jobs and growth Reduced support to renewables Climate Change Conference Refocus of EU actions Competitiveness: Balanced with climate protection Interest in innovation, green tech (energy storage, energy efficiency) Response to rise for Eurosceptic movements Attempts to reduce red tape and refocus on economics Consumer empowerment Rush hour for EU policies Smart meters Concerns to reduce energy prices (internal market, 2030 framework) EP elections coming up (22-25 May 2014) New EU Commission (Nov 2014)
5 The EU s approach to energy & climate The EU 2020 targets 20% reduction in greenhouse gas emissions EU Emissions Trading System Effort Sharing Decision 20% energy from renewable sources Renewable Energy Directive Pending Directive on ILUC 20% increase in energy efficiency Energy Efficiency Directive Energy Performance of Buildings Directive Ecodesign / Energy Labelling Directives
6 The EU s approach to energy & climate 2030 climate and energy framework (I) (22 Jan 2014) Greenhouse gas emissions 40% reduction Instruments: Stricter annual caps in ETS, Member State targets for non-ets sectors, ETS reform (market stability reserve) Renewables 27% EU-wide target No national targets for Member States Energy efficiency No new target Automatic savings of 25% estimated to achieve GHG target Implementation of legislation, review in 2014
7 The EU s approach to energy & climate 2030 climate and energy framework (II) (22 Jan 2014) Completion of internal energy market for gas and electricity Development of energy transport infrastructure should enhance security of supply Connecting Europe facility foreseen in the multiannual financial framework supports MS in completing the infrastructure Competitive and affordable energy for all consumers Address the high price differential with US Maintain protection for energy intensive industries and review carbon leakage list Security of energy supply Expected rise in EU s import dependence (90% for oil and 80% for gas by 2035) Prioritise use of indigenous sources (RES, nuclear, shale gas)
8 The EU s approach to energy & climate 2030 climate and energy framework (III) (22 Jan 2014) Governance tools to implement the 2030 framework Member States to develop national plans for competitive, secure and sustainable energy (non-ets GHG reduction objectives, RES, energy savings Developed under guidance (and reviewed by) Commission Indicators to assess progress over time (energy price differentials, energy import diversification, ) Parliament s 2030 resolution Council / European Council to examine New institutions to work on proposals Feb 2014 Mar/Jun 2014 Late 2014/Early 2015
9 The EU s approach to energy & climate Emissions (%) from 1990 levels GHG emissions Energy demand (% of 1990 levels) Share in energy 0 demand (%) Energy savings Renewables
10 Regulatory challenges Heating: A high potential for energy savings
11 Regulatory challenges Energy savings legislation impacting heating Ecodesign / Energy Labelling measures for heaters Minimum standards (energy use, sound, NOx emissions) Mandatory label Energy Efficiency Directive 1.5% energy efficiency obligation per year for distributors/retailers Energy Performance of Buildings Directive Minimum energy performance standards for buildings and systems Regular inspection of heating systems
12 Regulatory challenges Challenges Energy storage How to store energy from renewables? Heating oil: Part of the solution Diversity of situations & technologies Variety of architecture Different technologies, no one-size-fits-all solution Budget constraints Lack of public financing for energy efficiency Households budget constraints to perform works Policy bias towards certain technologies Public promotion of cogeneration and district heating and cooling Restrictive measures on oil Oil heating installations ban in Denmark, Norway
13 Regulatory challenges Oil heating bans: A threat for the industry Denmark Buildings Regulation Oil boilers banned from new buildings since 2013 Oil boilers banned from existing buildings from 2016 (only in natural gas or district heating areas) Norway Climate White Paper foresees ban on oil boilers Possible legislation expected this year Possible spill-over effect on other countries (e.g. Austrian region of Styria)
14 Regulatory challenges Oil heating bans: Eurofuel s reaction Anticipate Cure Our members monitor national developments Eurofuel keeps track of TRIS notifications Possible case courts in national jurisdictions, invoking Free Movement of Goods React Eurofuel provides legal arguments to the Commission against the Danish ban Eurofuel liaises with Danish association
15 Eurofuel s actions Our main messages Cost-effective energy savings Multi-energy hybrid systems
16 Eurofuel s actions Recent activities (1) Actions against national bans Contribution to primary energy, energy labelling & ecodesign consultations Input in Commission s work on ecodesign standards Advocacy on 2030 climate & energy package
17 Eurofuel s actions Recent activities (2) Contribution to IEA publication Stakeholder event on energy savings Case studies on national energy savings Consultation on air quality legislation
18 Thank you very much Sabine Heyman IWO EUROPEAN Institut für HEATING wirtschaftliche OIL Oelheizung ASSOCIATION e.v.
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